Surgical robotics developer TransEnterix sold 1.6 million shares to underwriters as part of a public offering, raising $52.2 million.
TransEnterix will use the money for research and development, sales and marketing, and commercialization of its SurgiBot system, according to CEO Todd Pope. The company will now seek FDA approval and commercial launch of its new medical device in 2015.
Stifel and RBC Capital Markets acted as the joint book-running managers, and Ladenburg Thalmann & Co. and Raymond James acted as co-managers for the offering. Shares closed at $4.32 on the first day.
TransEnterix moved off the OTC Bulletin Board on May 6, 2014 and onto the NYSE MKT – formerly the NYSE Amex – that is intended for trading stocks of smaller companies. TransEnterix trades under the symbol “TRXC.”
The financial action began April 21, 2014 when TransEnterix sold 12.5 million shares at $4 per share.
TransEnterix, based in North Carolina’s Research Triangle area, was founded in 2007 and, as of April 2014, has about 100 employees. It developed the Spider surgical robot and sold 3,500 of the single-use laparoscopic device; surgeons provided feedback on ways to make it better. Pope says the SurgiBot System builds on and improves the Spider.
The SurgiBot is not a single-use device and is small enough to sit on a rolling stand.
Ideally, the SurgiBot will allow a surgeon to make only one incision in the belly button, as opposed to up to five incisions in traditional surgery, Pope says. This not only reduces the chance of infection, but it also leaves fewer scars, he says.
The SurgiBot will compete in a market containing the well-known da Vinci robotic surgical device from RBR50 company Intuitive Surgical. However, Pope says the SurgiBot is for common surgeries like bariatric or gallbladder and does not compete directly with Intuitive.